If you have been thinking about getting a loan for sometime now, chances are you have heard about the term personal loan. Although the concept of a personal loan is fairly common these days, yet it continues to remain a grey area for most first time borrowers, and thus in today’s article, we will share with you a brief about personal loan, including the most significant advantages of them and lastly share with you the process of availing one, if you are in Hyderabad.
What Is a Personal Loan?
The first thing we need to understand is the meaning of a personal loan. In simple terms, a personal loan can be understood as a lending instrument through which you can borrow a certain sum of money, usually in the range of ₹10,000 to ₹500,000, and use it to meet your urgent expenses.
The concept of a personal loan is not particularly new to India; however, it has been gaining significant popularity in the past few years mainly due to the wide array of features it offers, which tend to be absent in conventional loans. Along with this, today, there are several lenders in India who specialize in rendering personal loans, further increasing their popularity.
How to Get a Personal Loan in Hyderabad?
Now that you know what a personal loan is and about its various features, let us discuss how you can avail one for yourself in Hyderabad. Mentioned below are some of the most significant steps you will need to follow:
Login to Google PlayStore and search for the term “personal loan in Hyderabad” You will come across a list of various personal loan lending apps which offer their services in Hyderabad.
Select any of the apps you like and download it on your smartphone.
Once installed, open the app and start the application process by first sharing your Aadhar linked mobile number.
Share the OTP you just received with the lender and proceed with the application by sharing your personal information, which includes your full name, email address, Aadhar Card Number, PAN Card Number, etc.
Share your income information with the lender, as in salaried or self-employed, followed shortly by uploading your income certificates as proof.
Enter the loan amount you require, fine-tune the repayment cycle and complete your application.
Once you have successfully submitted your application and if it gets approved, you will have the money in your account in under 48 hours.
Advantages of Personal Loans
Now that you understand the basic definition of a personal loan let us take into account some of its most prominent features.
If you have ever looked for a traditional loan in the past, chances are that you are well aware of the fact that most of them have a completely offline application process. Since most traditional lenders rely on legacy systems, in order to avail of the services of a traditional loan, you need to either visit the lender’s office or their representative and manually fill out an application form, along with submitting hard copies of all relevant documents. And in our busy day-to-day life, this process can quickly become immensely tedious and time-consuming.
On the other hand, most personal loans in India arrive with completely online application processes meaning that you can literally avail the features of this loan from anywhere. All you need is a stable internet connection, and either visits the lender’s official website or download their mobile application. Paired with this, you can share all relevant documents with the lender electronically, thus making sure that you save time and avail convenience when applying for this loan.
Another drawback of a traditional loan is the fact that most of them take anywhere from 1 business week to 4 business weeks to get approved. While this timeline might not look problematic at first, we need to take account of the fact that most borrowers are often in a hurry when applying for a loan, and thus an extended timeline can further increase their woes.
The reason why most traditional lenders take exaggerated amounts of time to approve your loan application is that they depend on legacy systems and thus need to manually check all your documents to figure out your eligibility for the loan.
On the other hand, most personal loans in India arrive with a completely online application process along with instant approval. Modern lenders leverage fintech technologies such as artificial intelligence and machine learning to automate manual tasks and also employ sophisticated algorithms to automatically check your eligibility for a loan. Employing these methods drastically reduces the time required to get a loan, and thus these days, you can get the loan amount from a personal loan to your account in less than 48 hours.
Availing the feature of instant approval ensures that you receive the money when you need it the most, thus proving it to be an advantage.
Flexible Repayment System
Last but not least, most traditional loans in India arrive with a fixed repayment system, wherein the lender pre-defines both the EMI amount you are required to pay every month, along with the date of repayment. While this is a smart move from the lender’s perspective, as they are essentially guaranteeing repayment, it hinders the borrower from taking full control of their personal finances.
On the other hand, most personal loans in India arrive with a flexible repayment schedule, where the lender gives you the option of customizing both the EMI amount you would like to repay every month along with the date of repayment. Both these features not only equip you with greater freedom but also ensures that you can take full control of your personal finances and better curate your financial well-being.
Securing a personal loan in India today has become easier than ever before, thanks to the many lenders who now specialize in rendering this service. Now that you know of all the steps you need to take, go ahead and apply for the personal loan you require.